Mumbai-headquartered SFC Environmental Technologies, a dominant player in wastewater treatment, has filed a fresh IPO proposal with SEBI. The offering includes a ₹150 crore fresh issue and an offer-for-sale (OFS) of 1.23 crore shares, driven by robust financials and international partnerships.
Established in 2005, SFC has emerged as a market leader with over 80% share in sequencing batch reactor-based wastewater treatment. The IPO comprises a ₹150 crore fresh issue, primarily for debt repayment of ₹47.46 crore, working capital needs of ₹69.67 crore, and general corporate purposes. The OFS will involve more than 1.23 crore equity shares. Retail investors will get a 35% allocation, with a portion reserved for employees.
SFC has a proprietary C-Tech system installed at over 1,000 sites across India, making it a pioneer in the space. The company has expanded capabilities by acquiring Chavare Engineering, Fine Aeration Systems, and Turbomax India.
It recently entered into a technology deal with DuPont for wastewater recycling and acquired 80% of Germany-based IST-Anlagenbau for solar sludge drying systems. These integrations enhance efficiency and reduce import dependencies.
SFC reported revenue of ₹697.85 crore for FY25, growing from ₹519.45 crore in FY23. Profit after tax rose from ₹94.81 crore to ₹152 crore in the same period, maintaining a PAT margin between 18% and 22%. EPS improved to ₹15.42 in FY25. With a net worth of ₹648.68 crore and net debt to equity at -0.08x, the balance sheet remains strong.
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As of August 15, 2025, SFC boasts an order book of ₹1,267.5 crore, with ₹670.7 crore from wastewater treatment and ₹592.5 crore from solid waste treatment. Wastewater recycling stands at ₹4.3 crore, indicating emerging demand. The high order-to-revenue ratio ensures healthy visibility for future earnings.
SFC Environmental Technologies’ IPO comes amid favourable sector dynamics and a compelling track record. With deep integration, global alliances, and strong financials, the company is well-positioned in India’s water and waste infrastructure space. Execution and policy stability remain significant to monitor post-listing.
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Published on: Aug 28, 2025, 3:35 PM IST
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